Oil prices fell about 3% on Friday after reports that European countries were considering additional diesel stock releases. The move eased concerns over tight global fuel supplies.
Brent crude fell $2.83, or 2.77%, to $99.48 a barrel. US West Texas Intermediate (WTI) dropped $3.35, or 3.61%, to $89.52.
Both benchmarks were heading for weekly losses. Brent was down about 4.7% for the week. WTI had fallen around 3.1%.
European gasoil futures, a key benchmark for diesel prices, fell more than 5% to about $1,377 per metric ton.
Europe Considers Diesel Stock Release
EU governments discussed a French proposal to release additional diesel reserves on Friday.
The proposal calls for European countries to release 50 million barrels of diesel. It also calls for International Energy Agency (IEA) members to release 50 million barrels of crude oil, according to sources familiar with the discussions.
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The discussions followed pressure from the United States for European countries to release emergency fuel stocks. Washington has sought additional supplies to ease surging diesel prices.
Ole Hansen, head of commodity strategy at Saxo Bank, said the entire energy complex was trading lower. He said the decline was led by gasoil and US ultra-low-sulfur diesel.
Hansen said the proposed releases could help ease tight fuel markets. They could also reduce the risk of a potential US diesel export ban.
Refined Fuel Supply Remains Tight
The latest market moves suggest that refined products remain a major concern.
Hansen said crude availability had improved as Middle East oil flows recovered. However, refined fuel supplies remained constrained.
Reduced refinery capacity and lower output in the Middle East and Russia have tightened diesel markets.
Oil prices had gained in the previous session after reports that Chinese refiners suspended oil-product exports for October. Beijing is seeking to preserve domestic fuel stocks.
Reuters also reported that China suspended fuel exports beyond Hong Kong and Macau in October. The move has tightened supplies across several Asian markets.
Middle East Risks Keep Markets Volatile
Energy markets remain sensitive to developments in the Middle East.
The Wall Street Journal reported that the United States was sending a third aircraft carrier and as many as 10,000 additional troops to the region. The report came as President Donald Trump considered whether to resume strikes on Iran after the US midterm elections.
Barclays said oil flows through the Middle East Gulf had gradually recovered. Pipeline bypass routes have also helped restore some supplies.
However, the bank said physical market conditions remained tight. Inventories continued to decline, while near-term cargoes traded at strong premiums over later deliveries.
Barclays raised its fourth-quarter Brent forecast by $20 to $115 a barrel. It also lifted its 2026 average forecast to $100 a barrel.
The contrasting signals highlight the uncertainty in global energy markets. Additional strategic stock releases could ease immediate supply concerns. However, refinery disruptions and geopolitical risks continue to affect refined fuel markets.
